Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
+ F8 [) p, G. S+ y. k9 Kexpect much from Crude Oil producers and future is not with the
1 G6 i* @+ |" I  t' qcompanies producing Jet fuels but Biofuels. Also no wonder if some of
. r4 X) p4 R; Z8 ?1 |0 k1 z& }0 ~these oil producer will go bankrupt or out of the business even if
0 z6 L2 V. w" O* u8 t( u: `crude prices improves. This implies also to good names such as Shell,
3 y+ O0 g' Z" v% X9 zEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
' J6 F+ y# d. E* a! XA year ago these things would have spiked the price of crude oil by at
( i& F; K* s' d" H. Qleast $50.00 per barrel. Today, oil price declined by a record amount.

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There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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; [9 W$ ^4 O" p- t2. New natural gas has been found in Pennsylvania and West Virginia.
' X% e1 a) f1 IThis is the largest find in North America.
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  d1 @, |  p; @  Z5 r9 ^9 M( \# i7 F3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

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; p, N+ c2 R8 k- D7 c4. Production of bio-fuels is beginning to reach critical mass. Bio
, J6 A8 d. S) M& q. C- r0 F& sfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
' x; T/ w/ R* m, s/ [0 A# pracing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
1 {8 [0 c- e: D( u5 T: \% m: O4 y3 _, fcattle, turkey and chicken processing plant will soon sell their fat
7 [5 {! ]6 b5 rto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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& Q* W' }% b, o) T- k! W6. There are 99 nuclear reactors in various stages of planning and
8 `  n- `' K8 }" Kconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.
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" Z! h5 _/ l$ s' T( t7. Every company in any form of transportaion business is replacing
! L  P, H/ n# d: T5 }" L3 {+ |$ {) Eolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
' X/ q; |9 t3 Q, T) K0 n7 N& y* I. \equipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
6 N! \# C/ E4 Y) Mcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.
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* H. E( y* Y4 @) j6 r4 R) U9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.
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, }' @* f+ G" c0 l* H6 S+ Y10. Solar, wind and ocean energy is displacing oil as an energy
! r. H! ]6 c' @: {) Isource. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
& d, z; N* i( C) {3 L/ Q$ iprice of crude oil but the sum of all of them together is world
. ~, F0 `6 _. u0 u2 u# c, h) V+ Gchanging. The important thing is that OPEC no longer has the ability
1 v* l9 M0 z) V- L' `, [  Xto control oil prices.

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" d6 M% o9 A/ xWith the above scenario, I still believe that there are under
/ E4 m' {. a( E) z7 |. C/ q. `7 ~performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only